One of the newsletters we have been watching in our Investment Watch Project just released some data from a federal report–
-a recent report from the Federal Reserve’s Survey on Consumer Finances concludes that from 2007 to 2010 median American income has dropped $3800, or 8%. Current median income is where it was in the mid-1990s. The largest hit was not to the rich or the poor, it was to the middle class. From 2001-2010 those with a college education suffered an income loss of 14.4%. So while college educated folks have more access to jobs they do not have more access to income.
-Part of this disparity is due to the way Americans hold their wealth. The rich are more diversified with investments in real property, stocks and bonds. Most middle class people hold most of their wealth in real estate – and we all know what has happened to that.
-The good news is that median debt held by Americans has dropped significantly. Credit card debt has dropped by 14.5% since 2007. The one type of debt that has increased is student loans, which have increased by 45% since 2007.
For those of you who have followed our project and who have been following the work of Harry S. Dent, Jr. it is interesting to note that these trends in income and debt are exactly what Dent predicted in his last published book, The Great Crash Ahead.
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Daniel R. Murphy
Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.